The tradition to outsource a part of the business was initially introduced by the manufacturing industries. Whether an automobile company or a soft drink company, they would always outsource at least one part of their business. This included distributing the bottles for a soft drink company and getting every piece together in a factory by an automobile company.
The business process outsourcing services have not extended their arms to almost every industry. The most common tasks to be outsourced are either the back office or the front office. The back office includes tasks like accounting and human resources while the front office includes tasks like technical support and marketing.
The outsourcing of services can either be at the same location or a different location.
5 Reasons
The concept of outsourcing has often attracted several criticisms from the negative elements of society. The companies, however, continue outsourcing some of their operations. The reasons are as follows:
More Time To Key Operations
Every business has two kinds of operations. The first is a primary operation and the second is a secondary operation. The primary operations are directly concerned with the companies and their stakeholders. The secondary operations, on the other hand, are of less importance to the company.
Balancing both of them is a tough call to make as there is a possibility that the entire management team may get distracted. To avoid any distraction and to focus solely on the primary operations of a company, it is advisable to outsource the secondary operations.
For example, a graphic designing firm directly deals with a designer or a printer. Managing the accounts is important but dedicating time to it can take more attention than required. An accounting firm can always take care of that part and the graphic designing firm can focus on delivering the projects on time.
Economic Way
Outsourcing a part of operations saves money for the business. Outsourcing some of the tasks is the most economical way, especially in the economy when the competition has gotten to the neck and maintaining the bottom line is the highest priority.
Every department of a company demands certain training and maintenance. On top of that, a company must put in some money to hire and retain employees. This hurts the most when the department is of least importance to the company. All this can be saved by outsourcing the task to a company that is already in that particular business.
Additionally, a company may not be pushing every employee to his or her full potential. Hence, overpaying that employee for less work. An outsourcing company hires employees based on their skills and pushes them to outperform as much as possible.
Maintain Performance
The overall performance of a company is maintained. Since the outsourced work rarely requires the eyes of a company, the management can focus on the primary tasks, track performances, and control the ones that have lost their way.
This cannot be possible at a time when a company is handling various departments. To clarify, the outsourced work does require a bit of supervision. All the customer service outsourcing companies, for instance, are majorly run by the manager but the client does make official visits once or twice a quarter. The visits are scheduled to mostly oversee the performance and understand the environment in which they are working.
As a client, a company also gets the right to talk to every employee of the outsourced agency. This helps to better understand the functions of the agency.
Time Management
A company can practically work 24 hours a day. Most of the companies in the United States of America outsource a part of their work to India. They get double the work done in 24 hours.
Due to the time difference, the agencies in India work during the nighttime and deliver the projects by early morning. The time mentioned is as per the standard time of the United States of America. In this way, a company in the USA utilizes 24 hours and gets the work done.
Outsourcing a part of the operations to another country gives a company an additional day. This day can be used to either get more work done or plan the future. Whatever the case may be, companies save time and money by outsourcing their work to an agency.
Better Competition
Not every company is equipped to face fierce competition. A competitor may be in the market for a long time while a company has just started its operations.
Everything is a fairy tale till the customer base of a company is small. The need arises when a company decides to scale its operations and seeks more skilled manpower. The investments on hand may not be enough. Also, the risk is always high while leveling up a business.
You can reduce the risk with an outsourcing agency on your list. The contracts are always flexible, which means that you can modify the size of the outsourced operations.
Final Words
As opposed to what people think, the outsourcing of a process is more than just outbound call center outsourcing. They serve several benefits in the short term and in the long term.
